GBPUSD Analysis

GBPUSD is showing two clear downward trends. The trading order is crucial, especially after reaching a high of 1.3661 yesterday.

During the latter part of the Asian session and into the European session, the currency pair dropped from 1.3661 to 1.3550. This initial decline had momentum; sellers took charge and pushed prices past intraday support without much delay. When there was a bounce, it didn’t feel impulsive—it was more of a correction. The recovery halted around 1.3606, marking a 50% retracement of the initial drop, which indicated that sellers were keeping control.

Following that, the second leg began.

The price dropped again from 1.3606, hitting a new low of 1.3494. This break pushed the pair below the previous low of 1.3550, reinforcing the notion that any rebounds are being sold off. We’re seeing lower highs and lower lows, suggesting a shift in control towards the downside.

Since reaching the low of 1.3494, there’s been some recovery; however, that uptick only managed to push it back toward 1.3550, the lowest level since the first drop. This point holds particular technical significance.

• This represents a former support level now acting as potential resistance.

• This level coincides with the 50% retracement from the decline between 1.3606 and 1.3494.

• This sits just above the 61.8% retracement of the broader 2026 trading range, around 1.3549.

This clustering makes the area around 1.3549 to 1.3550 an important range that defines the short-term outlook.

If the price remains below this, sellers continue to have the upper hand. A failure to break this would maintain the “low” structure intact and could lead to further declines towards 1.3494, which may extend if momentum builds.

Conversely, if buyers can regain and maintain 1.3550, it would suggest that the immediate downward pressure is subsiding. In that case, attention would shift back to the previous high of 1.3606 as the next barrier. But until that happens, there’s skepticism about recovery.

The market is currently defining the battleground.

We’ve seen two legs down, a fixed bounce, and there remains a significant resistance level overhead.

Here’s my perspective: As long as the price stays under 1.3550, sellers should be favored. The market has already indicated where supply has emerged twice. Without buyers proving otherwise, it’s essential to react to what’s happening rather than what one hopes to see.

Keep an eye on that level. Let’s see how the market unfolds.